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Prime Minister Narendra Modi’s ‘Make in India’ plan welcomed by South African business sector
The ‘Make in India’ campaign launched by Prime Minister Narendra Modi has been widely welcomed by the South African business sector which is eager to create more bilateral trade opportunities.
Heads of Indian missions in South Africa shared the ambitious plan at a briefing in Johannesburg.
Addressing concerns that the South African government’s approval of an industrial development action plan could be seen as competition for India’s campaign, Consul General of India, Randhir Jaiswal said, “But then every country is looking for investment to grow, so the whole idea would be to determine which areas India and South Africa could collaborate on so that both countries could benefit.”
“For example, South Africa has an elaborate plan to stretch its renewable energy programme, while we in India want to see ourselves as manufacturing all the equipment that goes into creating renewable energy at a fraction of the cost.
“As the manufacturing sector in India grows, there will be many synergies which South African business can latch onto.”
Jaiswal added that the agricultural sector in Limpopo province had a lot of opportunity to cooperate with India in the small and medium enterprise food industries there, where India could add value.
Raman Dhawan, who recently retired after building up Tata’s presence in Africa for several decades, said it was “a great day” to hear about the “Make in India” plan.
“I believe that a company producing all-purpose vehicles here could easily do so in India as well and thereby we could reduce their cost and expand their market,” said Dhawan.
Robert Appelbaum, the Head of the South Asia Group welcomed the new plan to streamline the licensing and regulatory environment which had frustrated him in the past.
Explaining why he held up hope for the ‘Make in India’ plan and its shift from red tape to a red carpet for investors, Appelbaum related how he had personally experienced the administrators of Gujarat state achieving miracles in a short time in Gujarat.
“That for me was the start of the incredible economic revival in Gujarat and is now the story of India. I have met many Indian leaders, but the most direct and down-to-earth was Chief Minister Modi,” he said.
“The slow lawyers are now great lawyers; old Mumbai airport is now probably the best in the world for me today; and a succession of corrupt ruling coalitions has been stopped and finally been replaced by one single strong party with sufficient majority to get the things done;
“Prime Minister Modi has decided that India must become a serious manufacturing hub and all I can say is: God help the fool who tries to interfere with that,” Appelbaum concluded.
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Press release on the Meeting of BRICS Foreign Ministers
The BRICS Foreign Ministers met on 25 September 2014 on the margins of the 69th session of the United Nations General Assembly.
In the spirit of openness, inclusiveness and mutually beneficial collaboration, the Ministers reiterated the commitment of BRICS to comprehensive cooperation and a closer economic partnership.
The Ministers congratulated Brazil for organizing the VI Summit and noted that the Fortaleza Action Plan was being successfully implemented. They underlined that the decisions to establish the New Development Bank and the Contingent Reserve Arrangement taken at the Summit raise BRICS cooperation to a fundamentally new level. The Ministers reiterated the need to promptly convene a meeting to advance intra-BRICS economic, trade and investment cooperation, as stated in the Fortaleza Declaration.
While discussing the issues of the current UN agenda, the Ministers emphasized the following.
The Ministers recalled that 2015 is the 70th anniversary of the founding of the United Nations and of the end of the Second World War. They supported the UN to initiate and organize commemorative events to mark and pay tribute to these two historical moments in human history, and reaffirmed BRICS members’ commitment to safeguarding a just and fair international order based on the UN Charter, maintaining world peace and security, as well as promoting human progress and development. They also reaffirmed the need for a comprehensive reform of the UN, including the Security Council with a view to making it more representative, effective and efficient, so that it can adequately respond to global challenges.
They called upon the Israeli and Palestinian sides to do their utmost to preserve the ceasefire regime and to reach a steady truce in the Gaza Strip as well as to prevent further recurrences of the use of force. They highly appreciated the role played by Egypt in the cessation of hostilities.
The BRICS member states expressed their support for the immediate resumption of negotiations between the Israelis and the Palestinians based on international law and relevant United Nations resolutions with the final aim of an independent, viable and contiguous Palestinian State based on the 1967 borders and living side by side in security and peace with Israel and all its neighbours. They called upon the international community, in particular the United Nations Security Council, to intensify its efforts towards the realization of this goal.
They voiced concern over the grave humanitarian situation in Gaza. The BRICS member states supported Egypt and Norway’s plans to hold an international donor conference on the reconstruction of the Gaza Strip in Cairo this October. The Ministers underlined that the implementation of such initiatives should be backed by prompt steps towards lifting the blockade on Gaza and promoting Palestinian reconciliation in order to restore administrative unity to the Palestinian territories on the basis of the political platform of the PLO and the Arab Peace Initiative.
The Ministers welcomed the agreement reached between the two Afghan leaders and committed to support the new government of Afghanistan in pursuing the task of building a strong, developed and peaceful nation.
The Ministers voiced serious concern over the conflict areas in Africa that negatively affect the security and stability of some States. They expressed their common view that the main role in tackling African conflicts should be played by Africans themselves with active support from the UN and the international community, through the African Union and its Peace and Security Council.
The Ministers of Foreign Affairs of the BRICS countries expressed their interest in exploring ways of joining efforts for supporting the prompt establishment of the interim African Capacity for Immediate Response to Crises (ACIRC) and the subsequent establishment of the African Stand-by Force.
The BRICS member states expressed grave concern about the outbreak of the Ebola virus in and its impact on West African countries. The Ministers stressed the need to contain the spread of the disease. They called for an urgent and comprehensive support of all relevant UN system entities, including WHO, to assist the affected countries in responding effectively to the crisis, and in this regard, welcomed the establishment of the UN Mission for Emergency Ebola Response. In this context, they supported the High Level Meeting on response to Ebola outbreak, convened by the UN Secretary-General on 25th September 2014. Each of BRICS countries has contributed to the international effort against the disease.
The Ministers underscored the importance of ensuring peace and stability in Ukraine. They welcomed the Protocol on the results of consultations of the Trilateral Contact Group, signed on September 4, 2014, and the Memorandum on the implementation of the said Protocol signed on September 20, 2014, and expressed their hope that the provisions of these documents shall be complied with.
The Ministers supported the UN Security Council resolution of September 24, 2014, on foreign terrorist fighters and called on the international community to cooperate in efforts to address the threat posed by the foreign terrorist fighters, including by preventing their recruitment, movement across borders and disrupting their financial support.
The Russian side briefed its partners on the preparations for the VII BRICS Summit in 2015 in the city of Ufa. Russia stressed its willingness to ensure the continuity of strategic focus of the association, while enriching it with new areas and formats of cooperation, which will be shared by the Russian Chairpersonship during the preparatory process.
The sides discussed the possibilities of supporting each other’s initiatives at the 69th session of the UN General Assembly.
Click here to download BRICS Legal Texts and Policy Documents.
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Private sector agency to unveil new export guide
Most local business people struggle to make a breakthrough in export ventures due to lack of knowledge about potential markets, while others are not familiar with the legal regime in those countries.
However, this could soon end after the Private Sector Federation (PSF) and Trade Mark East Africa unveiled an Exporters Handbook that will act as a resource and guideline for local exporters on such issues.
Gerald Mukubu, the PSF acting chief executive officer, said the handbook will be a guiding tool for local firms interested in the export business or those that want to improve their export operations.
“PSF is determined to assist Rwandan companies to benefit from trade opportunities out there by providing existing and potential exporters with updated information on the different trading regimes for their products,” he said during a consultative meeting in Kigali on Thursday. The handbook is expected to be launched next month.
Annable Wittles, a research analyst who helped put together the handbook, noted that it will provide a clear insight into the export processes in Rwanda.
Wittles said the handbook will have five export processes, including how to venture into the export business, market research and getting goods certified, as well as guide exporters on packaging, clearing and shipment.
“The handbook will help exporters to get more knowledge on how to certify their goods before export by informing them about the required standards, how to get the requisite documents like certificate of quality, certificate of origin, procedures on how to obtain certificates from National Agricultural and Exports Board and Rwanda Standards Board,” Wittles explained.
It will also provide a clear insight about the available markets across the world, an overview of the key markets, like East African Community, the DR Congo, the EU and US, and the possible exports to these markets.
Mubuku said the guide will also contribute to existing support mechanisms to facilitate Rwandan exporters.
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FG moves to institutionalise Agric policy
Following achievements recorded in the agricultural sector, the Federal Government has decided to institutionalise the Agricultural Transformation Agenda, ATA, policy.
This was disclosed by the Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, during the official inauguration of 15 member policy working group in Abuja recently.
Adesina said the move to institutionalise ATA was needful because government has positioned Nigeria’s agricultural sector on world stage, and whose policies had attracted massive investments and also attracted other countries within and outside the African region to adopt some of the policies for the growth and development of their agricultural sectors.
Adesina said: “For the inauguration of the 15 member policy working group is because we want to institutionalise the Agricultural Transformation Agenda, ATA, policy.
He said the ATA is driven by policies and what we have achieved today is by the policies put in place.
“As we continue our drive to transform Nigeria’s agriculture, spurred on by the major gains so far made, we must not lose sight of the need to avoid policy reversals.
“We must do all possible to ensure that the policies and institutional reforms are institutionalised and backed by legislations to secure the future of our farmers.”
He added that they will work very closely with the leadership of the National Assembly, especially the Committees of Agriculture, to ensure that legislations are passed to protect the policies driving the Agricultural Transformation Agenda.
“These are exciting days for Nigeria’s agriculture. Today, all States of the Federation are all working with the Federal Government in our drive to transform agriculture. Let us together arise and build, until our nation becomes once again a global powerhouse in food and agriculture. To this, we all must commit ourselves, so help us God.
The Minister said: “We have world class people who will look at the policy, make sure that there is legislation to protect ATA. I assure you that the report of your Committee will be presented to Mr. President and the Federal Executive Council for appropriate actions.”
He also expressed optimism about the competence and professionalism of the Professor Olu Ajakaiye led 15 member policy working group, adding that the committee was expected to produce a report within two months.
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Micro, small and medium businesses get $500 million boost from World Bank Group and Development Partners
In support of the Nigerian government’s effort to stimulate economic growth and create jobs for its citizens, the World Bank Group has approved a $500 million International Bank for Reconstruction and Development (IBRD) credit to fund the Development Finance Project. The project will help facilitate increased access and availability of financing for Micro, Medium and Small-Scale Enterprises (MSME) in agriculture, trade, light-manufacturing, services, and other areas.
The Development Finance Project will also provide a stable and predictable funding source through the establishment of a Development Finance Institution (DFI). The DFI will provide funding to eligible financial institutions to finance long-term lending to MSMEs, as well as funding to Micro-Finance Banks for on-lending and to expand their outreach.
“The proposed operation addresses the provision of finance, including long-term finance, through eligible Participating Financial Institutions to expand outreach to urban and rural Micro, Small and Medium Enterprises,” said Arnaud Dornel, Team leader for the Development Finance Project.
Following a period of turbulence, the Nigerian banking system is now well capitalized, liquid and profitable, according to financial soundness indicators. However, the banks are not in a position to give long-term loans, creating a major obstacle for Nigeria’s micro, small and medium-sized business owners. According to a 2014 survey, 6.7% of enterprises in Nigeria had a loan or active line of credit, compared to the Global Enterprise Survey average of 36.5%, showing that Nigeria is lagging far behind other countries.
Not only will the new DFI support the country’s dual objectives of stimulating more diversified and inclusive growth, it will also help alleviate the current financing constraints that have hampered the growth of domestic production and commerce by filling the current financing gaps.
“The project is fully in line the priorities set out in the new Country Partnership Strategy which calls for focusing on increasing access to finance, including long-term financing for key sectors such as housing, SMEs, agriculture, and infrastructure, through various mechanisms involving both private sector and public sector partnerships,” said Marie Francoise Marie-Nelly, World Bank Country Director for Nigeria.
The Development Finance Project comprises four components, including technical assistance and capacity building ($12 million), line of credit facility ($445 million), credit guarantee facility ($35 million), and project management ($6.75 million.) A front-end fee of $1.25 million will be financed out of the proceeds of the loan. Project beneficiaries include private sector MSMEs and Participating Financial Institutions (PFI’s). MSMEs will benefit from improved access to term finance for investment and working capital loans, while PFIs will benefit from technical assistance, term funding, and partial credit guarantees aimed at enhancing their ability to serve MSME’s.
The project is a joint effort between the World Bank Group, African Development Bank (AfDB), German Development Bank (KFW), French Agency For Development (AFD) and the United kingdom’s Department for International Development (DFID), and will be implemented by the Federal Ministry of Finance (FMOF) for seven years.
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Kenya to unveil over 20pc GDP jump on Tuesday after rebasing
Kenya will on Tuesday release half-year economic data that show the size of the economy has increased by nearly a quarter following the completion of changing the base year for computing output.
The review of national economic data – commonly known as rebasing – is expected to increase the size of Kenya by between 20 and 25 per cent in the level of gross domestic product previously reported.
The government told investors in June during the debut Eurobond that the rebasing would increase the size by 20.6 per cent, earning the country a middle-income status.
Other African nations that have revised the year they use as a base to calculate output include Nigeria, which vaulted to the top of African economies by size earlier this year after it finished the exercise.
“We will be seeing new sectors appear with the most obvious being communications as a separate entity from transport, and real estate where we will be capturing rent data,” Terry Ryan, chairman of Kenya National Bureau of Statistics (KNBS) said Thursday.
“Some service sectors will be subdivided. None of the old sectors will disappear but some will, however, not carry less weight, such as transport, wholesale and retail. But the overall profile of economic growth is, however, unlikely to be much different as we have been capturing most of the information already.”
KNBS data is currently based on figures from 2001 which will now be recast to 2009 – the new base year and reference point – to present an accurate reflection of Kenya’s economy.
The new economic data is expected to cement Kenya’s position as East Africa’s biggest market and Africa’s fourth-largest economy after Nigeria, South Africa and Angola.
Analysts said although becoming a middle-income country is good for Kenya’s standing as an investment destination; it was bound to come with its own challenges.
As a middle-income economy, Kenya will no longer qualify for the many trade concessions it currently enjoys as a low-income country.
The country could also lose its eligibility for grants, concessional loans and debt write-offs when its GDP per capita rises above the $1,036 (Sh92,339) threshold that the World Bank has set for middle-income nations.
But it could raise the country’s profile to attract investors and creating room to chalk up more debt.
The Vision 2030 secretariat says the statistical review will have no impact on the welfare of households.
Prof Wainaina Gituro, acting director general at Vision 2030 Delivery Secretariat, said earlier Kenya must focus on flagship infrastructure projects like the Lamu Port and South Sudan Ethiopia Transport Corridor, standard gauge railway and Konza technopolis to deliver growth.
This, he says, is the only way the country could boost household’s disposable incomes and lift workers purchasing power through faster income rises.
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Economic diplomacy holds the key to Kenya’s growth
When Jubilee came to power, top on its agenda was a desire to improve the economy to the level of growing at a double-digit rate. While this still remains a key target, tough challenges have emerged. The good news is that the government has shown indications that it is prepared to surmount whatever challenge, however difficult, to ensure the economy grows at a rate that will make Vision 2030, which seeks to make Kenya a middle-income economy in 16 years, attainable.
President Uhuru Kenyatta has been at the forefront in leading an aggressive push for more trade opportunities across the globe but with notable focus on Africa. The President and his deputy William Ruto have made a whirlwind of tours across the continent to strengthen trade ties with several countries while initiating ties where none existed before.
One of the countries that have been particularly on Jubilee’s radar is Nigeria. The President has visited this country in a bid to ramp up trade with this Africa’s largest economy. President Kenyatta was accompanied by a powerful delegation of businesspeople cutting across all the sectors of the economy. With such a high-level team, Kenya sent a strong message that improving the economy is its number one diplomatic objective. President Kenyatta was reciprocating Nigeria President Goodluck Jonathan’s visit last year. President Jonathan was also accompanied by a powerful delegation of businesspeople who also brought the same message of economic cooperation.
About two weeks ago, Kenya and Nigeria signed a deal to enhance bilateral trade, particularly in agriculture. Few would deny that Kenya and Nigeria are economic powerhouses with the latter the largest economy in Africa. You can only then imagine what they two can achieve when they join hands.
Neighbouring countries, especially members of the East African Community, are also key trading partners of Kenya with Uganda being one of the country’s principal importers of goods globally. President Kenyatta has been strongly campaigning for a more integrated East Africa for obvious reasons.
A closely-integrated bloc is good for business. Movement of goods, people and labour will be greatly eased and barriers to commerce will be brought tumbling down, leading to increased volumes of trade. The ultimate prize of this is of course radical reduction in poverty levels.
As the region’s biggest economy, Kenya stands to gain if EAC is made more vibrant.
With its thriving manufacturing sector, the country will get ready and easily-accessible market for its array of goods. Needless to say, there is a lot of unexploited potential in the region in terms of market capacity. Furthermore, with the right mix of trade policies and incentives, there is no reason why Kenya cannot leverage its relatively stronger economy and be the hub of commerce and a financial centre in the region.
In its ambitious push to transform the country through a rapid economic growth, Kenya has embarked on forging new partnerships in Africa and beyond. In this grand project, traditional partners need not worry as Kenya has no plan to abandon them for newfound friends. In fact the country is looking to strengthen old economic ties as it explores new ones.
Unfortunately Kenya’s effort to expand its trade horizon has been erroneously perceived as jettisoning old friends like the West for new ones like the East. Nothing can be further from the truth. The US and UK, and a number of other Western nations, remain Kenya’s key trading partners. And just because the Jubilee administration is keen to expand the economy by hunting for more investments and trade in Africa and the Asian countries, does not mean the West cease to be our partner. Kenya will look for investors wherever they are and signs trade agreements wherever they can be obtained so long as these deals adhere to acceptable international norms.
Jubilee’s focus on Africa is informed by the fact that trade among countries on the continent has not been given the attention it deserves. The world is united in the belief that Africa is an economic giant that is currently in deep slumber.
Fingers have been pointed at leaders who have failed to craft appropriate strategies to awaken this giant. However, the current crop of young and energetic African leaders apparently appear on the right track if a raft of trade deals being struck between countries is anything to go by.
Regional trading blocs are also increasingly surmounting challenges that have been holding them back and now they look set to play the economic transformative role they have been promising for years. If things move at this pace, soon economic co-operations and not divisive politics will be the most defining feature on the continent.
Everywhere you go, there is a palpable feeling that this is Africa’s century. It is heartening to see that Kenya is increasingly becoming a key player in this grand plan with Jubilee’s top leadership among the key drivers.
It is particularly exciting because the newfound optimism regarding the continent’s fortunes are coinciding with Kenya’s robust initiative to step up its manufacturing sector as it briskly marches towards middle-income status.
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Can Africa move away from aid to trade? Carlos Lopes answers
What should it do to attract more private equity and how can it convert the illicit financial flows to funds for domestic resource mobilization, climate change and conflict resolution – these are pertinent issues which affect the long term development of the African economies. Financing developmental efforts in Africa has proved difficult in the past. Overreliance on overseas development assistance (ODA) was seen as the solution. Now we know better.
Lessons learned from the Millennium Development Goals (MDGs) have prompted a fresh wave of thinking. Africa needs a transformative developmental framework. However, a structural transformation agenda will require an adequate, predictable, sustainable and integrated financing mechanism geared towards financing developmental goals. Also, the continent must embark on reforms to capture currently unexplored or poorly managed resources. This includes curtailing illicit financial flows and rather transforming those funds into a powerful tool for enhancing domestic resource mobilization, as a way of furthering the continent’s development.
According to recent studies, from 1970 to 2008, Africa lost $854 billion to $1.8 trillion in illicit financial flows. The latest progress report of the High-level Panel on Illicit Financial Flows, where I deputize for President Mbeki, revealed that the annual average was between $50 billion and $148 billion a year (ECA, 2013). Commercial money such as tax evasion and trade and services mispricing through multinational companies, constitute the largest component followed by proceeds from criminal activities and public sector corruption.
This loss undermines revenue generation and reduces the benefits from economic activities, particularly in the extractive sector. It is possible to redirect IIFs to increase domestic resource mobilization, finance the adaptation costs of climate change, and tackle conflicts in the region.
IFFs undermine Africa’s fiscal and policy space and deny its financial systems and Governments the opportunity to use domestic resource mobilization schemes. Tax evasion is a significant component of illicit financial flows as is aggressive tax avoidance and trade mispricing. Other means are unequal agreements and contracts by which resources are transferred from Africa. Examples include poorly negotiated resource extraction contracts, investment and double taxation agreements. For example some multinational companies take advantage of different double taxation treaties to shift profits from one country to another, exploiting the treaties with the lowest withholding tax rates.
Curbing illicit financial flows to finance the adaptation costs of climate change Illicit financial flows diminish resource capacity in the most vulnerable continent to the impact of climate change. Adaptation will cost African countries billions of dollars a year, increasing pressure on development budgets. Innovative domestic climate finance opportunities such as resource savings from curbing illicit financial flows could help in financing resilient policies.
Understanding illicit financial flows and conflict in Africa Illicit financial flows pose a threat to the stability and security undermine institutions and democracy, and jeopardize sustainable development and the rule of law. Many of the violent conflicts in the forest regions of Africa are tied to “lootable”commodities such as precious metals and rough diamonds that can be used to fuel conflict. Revenue from forestry are used by belligerents to purchase arms and other materials.
Clearly, to deal with the problems of conflict in Africa, it is imperative to curtail illicit financial flows and fight corruption and the institution of tax havens. Better taxation provide additional revenue to fund Government budgets. In line with this, Africa needs strong findings on mechanisms, strategies, and peer research to distinctly show the impacts of illicit financial flows on the different sectors of economic activity. Indeed, curtailing illicit financial flows could become a key delivery mechanism for sustainable development. Concerted efforts by countries of origin and destination are needed. The legal and financial approach must be transparent and the international asset recovery regime integrated, in an effort to curb these outflows and unlock the much-needed resources.
The better use of ODA nowadays should be to create the support mechanisms that would allow Africans to benefit from their own wealth, rather than providing aid.
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The Road from Rio+20: Towards Sustainable Development Goals
Over 20 years after the 1992 Rio Earth Summit, advancing sustainable development from the local level to the global level remains a major challenge and responsibility. In fact the development challenges, especially of poverty eradication, have become even more intractable.
The 2012 United Nations Conference on Sustainable Development (Rio+20) discussed these global imperatives and agreed, inter alia, to define sustainable development goals (SDGs) to serve as a guide for the international community in implementing actions to better advance sustainable development.
The agreement to develop SDGs came at a time when the UN community is also engaged in elaborating a new global governance framework to guide development discourse and efforts in the post-2015 period when the current UN Millennium Development Goals will expire. While distinctly separate, the two processes are more than likely to give rise to one set of post-2015 sustainable development goals. Such goals, as provided in the outcome document of the Rio+20 summit, should be action-oriented, addressing all three dimensions of sustainable development (economic, social, environmental) and their inter-linkages in a balanced way; they must be concise, easy to communicate and relatively few in numbers; and they must be relevant to all countries.
The emphasis that the new goals must reflect fully the three dimensions of sustainable development and ensure their balanced treatment is very important. It addresses some of the lacunae in the current MDGs framework, namely lack of integration among the different goals and weak emphasis on economic drivers of development with the result also that trade enablers received limited attention. Yet development experiences over many years and recently in many countries have shown that economic growth is critical to inclusive development and this can be sustained by an enhanced and qualitative participation in international trade, accompanied by financial including investment and technology flows and supportive institutional, regulatory and human capacities. Building competitive productive capacities to increase participation in trade in turn requires enabling policies and measures at national, regional and international levels.
UNCTAD, as part of the United Nations system, is contributing to the discourse among Governments with analysis and advice. Our efforts are squarely focused on fostering a process of trade-led development that is socially, economically and environmentally inclusive and also builds up culture and creativity.
This fourth issue of our Rio+20 Journal, which we termed the “The Road from Rio: Towards Sustainable Development Goals” articulates some perspectives on such goals and the contribution of international trade. We have invited several leading personalities to share their views on aspects of the development framework in the post-2015 period. We hope this contribution will help Governments and other stakeholders navigate the multitude of global issues facing the international community today and define a sustainable development framework that can have a major impact on poverty eradication across the globe in the years ahead.
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Zimbabwe launches Cotton-to-Clothing Export Strategy
Zimbabwe’s Cotton-to-Clothing Export Strategy was launched today [26 September 2014] by the Minister of Industry and Commerce, the Deputy Executive Director of the International Trade Centre (ITC) and Secretary-General of the Common Market for Eastern and Southern Africa (COMESA) Sindiso Ngwenya at the 5th Clothing Indaba trade fair in Bulawayo.
‘Given the abundance of the quality natural fibre cotton, as well as highly skilled manpower in Zimbabwe, I believe that implementation of this strategy will bear the necessary rewards in terms of not only generating the much needed foreign currency but repositioning Zimbabwe as a global competitor,’ said His Excellency M. C. Bimha, Zimbabwe’s Minister of Industry and Commerce.
Aligned with the Eastern and Southern Africa (ESA) region’s strategic goals, Zimbabwe’s Strategy sets out a roadmap to help the country regain its leadership in quality and value addition in the Cotton-to-Clothing sector.
Attending the launch in Bulawayo, Dorothy Tembo, Deputy Executive Director of ITC, highlighted the importance of the ITC-facilitated Sector Development and Export Strategy for Zimbabwe, which builds on COMESA’s regional Cotton-to-Clothing strategy facilitated by ITC in 2009.
‘The sector’s potential for broad-based economic growth as well as for value addition extends beyond Zimbabwe’s borders. It is, moreover, equally important for the region, which can only benefit from Zimbabwe’s economic recovery,’ Ms. Tembo told a gathering of more than 200 sector stakeholders from Zimbabwe and the ESA region.
The Cotton-to-Clothing sector extends from smallholder farming, which contributes to the livelihoods of more than 1 million Zimbabweans, to capital-intensive sub-sectors such as spinning and textiles that have played an integral role in the country’s industrialization and to the clothing industry. The sector also has important food-security implications – cotton seed processing by-products can be utilized as animal feed, while cottonseed oil is used for human consumption.
More than 100 stakeholders from the Cotton-to-Clothing sector, including representatives of the public sector, rural communities, small and medium-sized enterprises and civil society, were involved in defining a series of market-led development priorities to support the Strategy. It identifies key markets in Africa, Asia and Europe where the value, diversity and attractiveness of ‘Made in Zimbabwe’ products have not yet been tapped.
The Strategy also targets domestic production. The ambitious targets that stakeholders have negotiated include a 71% increase in yields to the benefit of some 250,000 smallholder farmers, and an increase in yearly seed-cotton production to 450,000 tons, as well as a target for exports of textiles and garments to reach US$ 110 million by 2019, when the Strategy’s implementation is expected to be completed.
With the launch of the Strategy, the focus shifts to implementation, and international and regional development partners have already expressed interest in financing and supporting activities elaborated in the Strategy’s Plans of Action. In addition, ITC will continue to extend its technical assistance during the implementation phase.
‘Successful implementation will help the sector to once again become a major driver of broad-based economic growth in Zimbabwe,’ said Ms. Tembo. ‘This would also help ensure that the Cotton-to-Clothing value chain of the subregion will be better placed to foster regional integration and economies of scale.’
Developed by Zimbabwe’s Ministry of Industry and Commerce, with the support of ITC, the Strategy was funded by the European Union (EU) under the EU-Africa Partnership on Cotton, and the African, Caribbean and Pacific Group of States (ACP).
Read more about the ITC’s Trade promotion and value addition for African cotton project.
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Regional trade agreements “cannot substitute” the multilateral trading system – Azevêdo
Director-General Roberto Azevêdo, in closing the WTO Seminar on Cross-Cutting Issues in Regional Trade Agreements (RTAs) on 25 September 2014, said that RTAs “are important for the multilateral trading system – but they cannot substitute it”. He pointed to “big issues” such as trade facilitation, financial or telecoms regulations or farming and fisheries subsidies that “can only be tackled in an efficient manner in the multilateral context through the WTO”. This is what he said:
Good afternoon everybody. I trust that you have had a productive day discussing what is a very complex issue.
I am pleased to have the chance to speak to you on RTAs and the many cross cutting issues that they give rise to.
Clearly RTAs are not a new phenomenon.
In fact they pre-date the multilateral system because, in a sense, they were the seeds which grew into the General Agreement on Tariffs and Trade. You can argue that the GATT was effectively a multilateralisation of the network of reciprocal trade agreements that countries had been pursuing for some years previously.
So the system as we know it today has its roots in these agreements – and we have always allowed for new agreements to be created. Both the GATT and now the WTO have specific rules providing scope for this.
So these initiatives are important – they co-exist with the multilateral system – and they can bolster it in a significant way.
RTAs are blocks which can help build the edifice of global trade rules and liberalization.
But of course things have changed in recent years.
RTAs have grown much more rapidly since the WTO came into being compared to the days of the GATT.
The WTO has been notified of 253 RTAs that are in force today.
On average this has meant 24 notifications per year since the formation of the WTO, compared to 3 on average during the GATT years. This is a considerable increase.
And these agreements are not only more numerous, they are becoming increasingly complex.
While over 80% of RTAs notified are bilateral agreements, we are seeing more and more large regional agreements.
And we are seeing more agreements between countries in different regions, rather than between neighbours. This is very different from the pattern we saw during the GATT years.
In addition we see many more developing countries negotiating RTAs today.
This proliferation of agreements, each with their own sets of rules, has been dubbed a “spaghetti bowl” – and I would certainly agree that we are seeing a significant increase in the level of complexity inside the agreements and in their relations with each other.
Most RTAs of today make deeper and more extensive commitments, and have moved beyond commitments only in market access in goods.
Research by the Secretariat based on RTAs notified since 2000, shows that:
- Around 60% of these RTAs contain commitments in both goods and services.
- Over half contain rules on investment.
- Other issues such as provisions on government procurement, competition, SPS, TBT, trade defence measures and intellectual property rights are also found in over half of the RTAs notified.
- A smaller proportion also include other issues such as environmental and labour standards and electronic commerce, which are not covered by the WTO.
A question which requires further consideration is how RTA provisions can be complementary to the multilateral trading system.
The papers that were presented today are an attempt to fill that gap in our knowledge.
The papers address similarities and differences between the provisions in RTAs and the WTO agreements.
And, as you saw, it is a very mixed picture.
For some issues such as market access in goods and services, most RTAs grant their partners a higher level of market access than that available through the WTO.
For other issues, the picture is less straightforward.
For example, RTA provisions on anti-dumping rules. In general RTAs do not appear to have gone much further beyond where we are in the WTO today.
Similarly, for provisions on intellectual property rights, almost half of all RTAs examined simply reaffirm existing rights under the TRIPS Agreement.
While for issues such as investment, which is touched on by some RTAs, there are no WTO rules.
Furthermore, although some RTAs have provisions on disputes, most of the dispute settlement mechanisms provided are rarely used. Meanwhile the level of activity in the WTO’s DSB is rising very rapidly – and one in five of the disputes brought to the WTO involve parties who are also themselves part of an RTA.
Another trend that has been noted in the past few years is negotiations that could potentially bring together a number of existing RTAs, in so-called “megaregional” negotiations.
These negotiations aim to consolidate existing preferential relationships – so their potential effect on the overall level of complexity will be a topic for further research and analysis.
While the trend to negotiate new RTAs continues, liberalizing trade bilaterally or regionally is only a part of the picture.
As I have said many times – these initiatives are important for the multilateral trading system – but they cannot substitute it.
I would point to a number of factors.
To start with, there are many big issues which can only be tackled in an efficient manner in the multilateral context through the WTO.
Trade Facilitation was negotiated successfully in the WTO because it makes no economic sense to cut red tape or simplify trade procedures at the border for one or two countries – if do it for one country, in practical terms you do it for everyone.
And this is not the only issue that’s inherently multilateral.
Financial or telecoms regulations can’t be efficiently liberalized for just one trade partner – so it is best to negotiate services trade-offs globally in the WTO.
Nor can farming or fisheries subsides be tackled in bilateral deals.
Disciplines on trade remedies, such as the application of anti-dumping or countervailing duties, cannot significantly go beyond WTO rules.
The simple fact is that very few of the big challenges facing world trade today can be solved outside the global system. They are global problems demanding global solutions.
Another important aspect, leaving aside the content of the agreements for a moment, is their geographical scope. RTAs tend to exclude the smallest and most vulnerable countries. That’s a major source of concern.
And as our economies become more interconnected across borders and regions, RTAs do not – and probably cannot – fully address the gains from trade that can be obtained through global value chains. Indeed, the strict, product specific rules of origin that often accompany RTAs may actually be detrimental to value chains and therefore exclusionary for some. The smaller the country, the smaller the company, the smaller the trader, the bigger the likelihood is that they will be excluded.
There is also concern that by creating different sets of rules and regulations, RTAs may be burdensome for traders and business. This is the complexity point that is a concern for many.
Finally, although these initiatives show that WTO Members continue to liberalize trade, fragmentation of the trading system cannot be a substitute for the benefits of negotiating one set of rules for all.
Ideally, this is where we should be putting our focus.
But in order to ensure this clearly one thing we need to do is to deliver on what we agreed in Bali.
We are now halfway through an intensive consultation period to resolve the current impasse on this – but as things stand today, at this point in time, we don’t have a solution.
While this situation persists I think the risk of disengagement increases exponentially. And this point is underlined by the proliferation of these other approaches which you have been examining today.
For the sake of the multilateral system, and all those who stand to benefit from it, I think we have to find a solution to our current problems and put our work here at the WTO back on track. And we have to do it quickly. Time is not on our side.
To conclude, I hope today’s meeting has given you the opportunity to look at some of these issues in detail – and provide some food for thought. I hope it has been a very interactive exercise.
As I have said, RTAs are not new, but they are growing and spreading at an unprecedented rate – and it is clear that there remain some considerable gaps in our knowledge.
One fundamental point is that very little information exists on the benefits of RTA preferences.
So I cannot emphasise enough the importance of the WTO’s Transparency Mechanism for RTAs. I commend you for the important information you have provided. It is this information that enables the kind of research that you have seen presented today.
The information, however, is not complete. A number of RTAs that are in force have not yet been notified. So we need to fill that gap as well.
Therefore I very much hope for your continued cooperation through timely notifications of RTAs as this will help us to address this issue.
In this way we will be able to gain a better understanding of the impact that RTAs have – how they work together amongst themselves, how the complement the multilateral system, or not – and what that means for us all.
So it with a sense of gratitude that I join you today.
When I visit a country – and I visit a great many as part of this job – every single time I hold a press conference or public event, the one question I always get is: “what do RTAs mean for global trade – how do they impact the multilateral system?”
So this is a big issue. And I am thankful for your time in tackling it today.
Thank you for listening.
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Tanzania seen luring IPOs as State scraps foreign caps
Tanzania, which has Africa’s best-performing stock market, lifted controls on foreign-share ownership, making it more enticing for companies to consider initial public offerings.
The removal of restrictions on foreigners owning more than 60 percent of companies that trade on the Dar es Salaam Stock Exchange was published in a Government Gazette dated Sept. 19, Charles Shirima, spokesman for the Capital Markets and Securities Authority, said by phone today from the commercial capital, Dar es Salaam. Investors from the East African Community will also be allowed to buy as much as 40 percent of Tanzanian government securities, he said.
The 11-member Tanzania Share Index gained 73 percent in 2014, the most among 17 African gauges tracked by Bloomberg. Tanzania’s $33 billion economy, the largest in East Africa after Kenya, will expand 7.2 percent this year, according to World Bank estimates. The country has the most gas reserves in the region after Mozambique, spurring an investment boom, while its mobile-phone penetration rate of 60 percent leaves room for growth for operators, according to Renaissance Capital.
“We’re going to see more IPOs for sure because now companies are going to have access to international capital markets, which they haven’t had before,” Kwame Narh-Saam, head of sub-Sahara trading at Renaissance Capital, said by phone from London. “It’s quite a good story, they’ve got good growth that’s expected to be stable.”
The Dar es Salaam Stock Exchange, which has a market capitalization of 21.9 trillion shillings ($13 billion), is targeting a market value equal to 50 percent of Tanzania’s gross domestic product by 2017, Chief Executive Officer Moremi Marwa said in an interview last month. Finance Ministry Permanent Secretary Servacius Likwelile didn’t answer a call to his mobile phone seeking comment.
‘Something Big’
The bourse is targeting five IPOs by June, with one set for October or November and another two during the first quarter of 2015, Marwa said in a Sept. 10 interview. Three of the companies are in financial services and banking, one in manufacturing and the other in mining, he said, declining to identify them because details aren’t public.
“It seems like the government is putting pressure on the telcos in particular to list,” Narh-Saam said. A share sale by the local unit of Bharti Airtel Ltd. would set a precedent for other mobile-phone companies to follow, he said.
Commodity companies may also seek listings with the country’s gas reserves “set to propel the economy into something big,” Narh-Saam said. “The infrastructure developments that are happening on the ground, you can just see it’s the start of something that’s going to be difficult to ignore.”
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N$223.5 bn needed for infrastructure development
It is estimated that government will require about N$223.5 billion over the next four years to finance infrastructure projects in Namibia.
According to the Director of Research and Chief Economist at the Bank of Namibia, Florette Nakusera, this figure is broken down into N$17.9 billion for roads, N$60.9 billion for railways, N$34.9 billion for ports, N$9.7 billion for airports, N$50.8 billion for energy and N$45 billion for housing.
Speaking at the Bank of Namibia’s 16th Annual Symposium, which took place in Windhoek yesterday under the theme “Financing of Infrastructure for Sustainable Development in Namibia”, Nakusera said available funding for infrastructure during the next four years adds up to about N$73.5 billion, leaving a shortfall that needs to be financed through alternative sources of about N$150 billion.
Speaking on behalf of the Director General of the National Planning Commission (NPC), Tom Alweendo, the Permanent Secretary in the NPC, Leevi Hungamo, said: “The importance of infrastructure in support of economic growth has long been recognized. However, the provision of infrastructure services to meet the demand of businesses, households and other users, is one of the major challenges of economic development.” He added that the failure to invest in infrastructure determines the future development of a particular country or region, thus infrastructure is an important term in judging a country or a region’s development.
Hungamo further noted that a huge gap exists in the world between required infrastructure and the existing infrastructure. He mentioned that statistics on the global level shows that an estimated 1.1 billion people live without safe drinking water, 1.6 billion live without electricity, 2.4 billion do not have proper sanitation and more than 1 billion are without access to an all-weather road or telephone services. According to Namibia’s 2011 Housing and Population Census, 20 percent of Namibian households do not have access to safe drinking water, about 70 percent of households have no access to electricity for cooking and 60 percent of households have no access to proper sanitation.
“There is a huge discrepancy in accessing these services across regions and between rural and urban areas and the gap is more pronounced in sub-Saharan Africa and Asia. Therefore, the key to African renaissance is in the development of extensive, adequate and quality infrastructure,” remarked Hungamo.
During his welcoming remarks at the annual symposium, Bank of Namibia Governor, Ipumbu Shiimi, noted that Namibia generally has a good core physical infrastructure relative to other sub-Saharan African countries.
“Despite vast geographical size, Namibia has managed relatively well to develop good transport networks, electricity distribution lines, water and telecommunications across the country. However, more investment in infrastructure is still needed if Namibia is to achieve higher and sustained growth and achieve Vision 2030,” remarked Shiimi.
The Bank of Namibia Governor continued that there is now a greater need to revamp key existing infrastructure and to build new infrastructure as the existing ones have reached the end of their lifecycle. Priority infrastructure includes new roads, deepening and modernizing port facilities, houses and upgrading of power generation capacities.
Shiimi explained that since independence, government has consistently invested in various development projects of an infrastructural nature. “Financing of these projects was mainly done, directly and indirectly, through the annual budgetary allocations, which was funded with the income collected from taxes and debt. Of late, state-owned enterprises were encouraged to raise funds on the capital markets, either through their own balance sheets or backed by government guarantees, and more recently to engage in public-private partnerships,” said Shiimi.
In Namibia, the national budget is the main source of infrastructure financing among government financing initiatives.
Government’s capital expenditure since independence until 2009 has been less than 6 percent of gross domestic product (GDP), which is contrary to the first National Development Plan’s (NDP1) pronouncement to have capital spending 6 percent of GDP.
The average spending for 2010 to 2012 was about 6 percent and this was attributed partly to the implementation of the Targeted Intervention Programme for Employment and Economic Growth (Tipeeg).
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Eastern African Insurance Regulators conclude Seminar on Regulatory and Supervisory Frameworks
Insurance Regulators from Eastern Africa today concluded a two week seminar in Dar Es Salaam on the regulatory and supervisory frameworks in the region. Their discussions were also focused on developing an action plan to enhance, and to stimulate further regional cooperation.
The seminar titled Building More Effective Insurance Supervision which attracted participants from across the region, was organized jointly by the Toronto Centre and the International Monetary Fund’s (IMF) Africa Regional Technical Assistance Center for Eastern Africa – East AFRITAC (AFE) in cooperation with the Tanzania Insurance Regulatory Authority.
The seminar was motivated by the growing importance of the insurance industry in the region, the increasing cross-border operations and the as well as significant regulatory challenges that are faced by practitioners in the region.
In his opening remarks, Mr. Juma Juma Makame, Deputy Commissioner of the Tanzania Insurance Regulatory Authority, emphasized that further regional cooperation is necessary not only in developing effective frameworks to supervise the cross-border activities of insurance companies, but also to realize the convergence and harmonization of frameworks within the East African Community (EAC) Partner States.
During the seminar, participants discussed their country priorities with regard to enhancements to be made to the supervisory and regulatory frameworks, and also with regard to consumer education. Participants received training and assistance on developing action plans and on the implementation of the measures needed to effectively realize some of the country priorities. In addition, technical presentations were held on financial analysis, capital adequacy, stress testing, on- and off-site supervision, intervention, enforcement and winding-up, and participants worked in groups on several case studies.
Speaking at the closure of the seminar Ms. Anna Msutze, Director of the Financial Stability Directorate of the Bank of Tanzania addressed the participants on the evolving financial stability function and the set-up of the Financial Stability Forum in Tanzania as a means to implementing effective macro-prudential oversight. She highlighted the importance of the risk transfer function of the insurance sector and its contribution to the creation of a more stable operating environment for households, non-financial corporations, financial institutions, and public sector entities giving them greater certainty in their forward planning and more entrepreneurial freedom. This reinforced the importance of establishing effective supervision and to address the topics discussed during the seminar.
Twenty-nine insurance supervision officials from 8 countries (Burundi, Eritrea, Ethiopia, Kenya, Rwanda, South-Sudan, Tanzania, and Uganda), a representative of the Secretariat of the East African Community and two Financial Stability experts of the Bank of Tanzania attended the seminar.
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Who is not cooperating with China?
Senior Chinese officials and scholars attending a global conference have said it is “unfair and deceitful” for some western countries to condemn the China-Africa partnerships yet the same countries are actively working with China to develop their own economies.
Scholars from China and Africa are attending an International Conference on African Agriculture, Rural Development and Sino-Africa Cooperation, which opened on 21 September in Nanjing, China.
“There is something wrong with the world we live in today,” Prof Liu Chengfu said.
“China is cooperating with virtually everyone, and when we deal with European countries or America, then the relationship is normal and ok.”
“However, when we cooperate with Africa, the partnership is suddenly viewed with suspicion.”
Prof Liu is vice director of the China Society for Africa Studies at Nanjing University.
He said despite a blooming relationship that has seen trade between Africa and China increase exponentially over the past decade, the Sino-Africa partnership continues to receive negative attention from some western countries, and China’s increasing engagement with Africa is often portrayed as prowling the resource-rich continent.
Yet one of the major milestones of Sino-Africa cooperation is that Africa is rapidly gaining recognition on the global market.
Furthermore, research shows that, compared to many years of African engagement with Europe and America, the Sino-Africa relations have yielded more benefits more quickly.
Prof Liu said China and Africa need to work together in addressing this misconception, perpetrated by those who “feel threatened” by this blossoming relationship.
The Director of the Department of African Affairs in the Ministry of Foreign Affairs, Lin Songtian concurred, saying it is sad to note that some developed countries do not want to consider Africa as an equal partner in the global market.
Rather, they want Africa to remain on the periphery as a source of raw materials and not a manufacturer of finished goods.
“Africa will not be politically independent if it continues to rely on aid,” he said, adding that it is for this reason that China does not offer aid but is interested in fostering a win-win partnership that is based on mutual trust and respect.
He said Africa has the capacity to become a major player on the international stage, and China stands ready to assist the continent to achieve its developmental goals.
These goals can be achieved by boosting agricultural production, he said, as the sector has a greater capacity than most other industries such as tourism to be a lynchpin for socio-economic development, mainly because investment in agriculture benefit the people directly, especially poor people, of whom a significant number are farmers on the continent
“Africa is gifted with numerous resources such as land, water, good climate and labour force to feed itself,” said Ambassador Lin, who is a former ambassador to Liberia and Malawi.
“China is willing to share experiences with Africa on how to transform its agriculture sector.”
He urged Africa to invest more in infrastructure development, including road and rail, to ensure the smooth movement of farm produce, services and people across the region.
There is also need for the continent to increase the use of irrigation, technology and research to boost production.
Another major issue for Africa is to co-opt youths and women in agriculture development, since these make up the majority population in the region.
The International Conference on African Agriculture, Rural Development and Sino-Africa Cooperation (CAARDSAC), which runs from 21-28 September, aims to create a platform for better communication and scholarly exchange among Chinese and African researchers.
Some 20 researchers from Africa are participating in the conference, which coincides with the 50th Anniversary of the Centre of African Studies of Nanjing University (CASNJU).
CASNJU was established in 1964 and has played an important role in promoting African studies in China.
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As development goals near deadline, Ban urges global leaders to ‘finish the job’
Great gains have been made in the global effort to achieve the Millennium Development Goals, known worldwide as the “MDGs,” but with the deadline fast approaching more must be done to fully meet the targets set for 2015 and beyond, Secretary-General Ban Ki-moon said on 25 September 2014.
In his remarks to a gathering of 300 global leaders convened by the MDG Advocacy Group, Mr. Ban applauded the successes made so far in pushing forward with the Goals and in having “raised awareness, mobilized resources, and helped shape policy.”
“The MDGs have transformed the lives of millions of people,” he told delegates at the gathering, which was held on the margins of the General Assembly’s annual high-level debate.
The meeting, organized by the MDG Advocacy Group, a body of global leaders and eminent personalities assembled by the Secretary-General to promote the implementation of the Goals, also marked the release of the Group’s latest report – Accelerating Action: Global Leaders on Challenges and Opportunities for MDG Achievement – which confirms the strides made so far.
The eight MDGs, agreed by world leaders at a UN summit in 2000, are described as a 15-year roadmap to fight poverty, hunger and disease, protect the environment and expand education, basic health and women’s empowerment.
According to the new report, in fact, the past two decades has seen the likelihood of a child dying before the age of five nearly reduced by half while the maternal mortality ratio has dropped by 45 per cent. At the same time, antiretroviral therapy for HIV-infected people has saved an estimated 6.6 million lives and another estimated 3.3 million people were saved from malaria due to the diffusion of major preventions such as bed nets and treatments. Efforts to fight tuberculosis, meanwhile, have saved an estimated 22 million lives.
“Fewer people are in poverty. More children are in school. We are making inroads in the fight against malaria and tuberculosis. Families and communities have greater access to an improved drinking water source,” the Secretary-General noted.
With 462 days remaining until the MDG deadline, the report strikes an optimistic note, adding that with many of the Goals already met – including the reduction of poverty, increasing access to clean drinking water, improving the lives of slum dwellers, and achieving gender parity in schools – many more targets are also within reach by the end of 2015.
But, Mr. Ban warned, much more remained to be done in order to “finish the job.”
“We must do more to finish our targets on hunger and chronic child malnutrition. Faster progress is needed to meet the goals of reducing child and maternal mortality and to improve access to sanitation,” he continued.
The Secretary-General urged delegates to help focus on what he described as “two critical fronts” in the battle towards realizing the Goals: accelerating progress towards meeting the MDGs and preparing for a post-2015 world.
“We need a strong successor framework in place,” affirmed Mr. Ban. “Building mechanisms for effective partnerships and multi-stakeholder accountability will be critical to the success of the post-2015 development agenda.”
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‘The future of Africa is in unity’, says Niger’s President, among continental leaders at UN Assembly
Addressing the United Nations General Assembly at its annual high-level debate, Mahamadou Issoufou of Niger warned today against attempts to balkanize Africa and underscored that the post-2015 sustainable development agenda need to be anchored in the “three D’s”: defense, democracy and development.
“The Pandora box of balkanization that is open in Africa needs to be closed again if one does not want the whole continent to go up in flames,” said President Issoufou, the first of several African leaders to address the General Debate of the 69th Assembly
“The future of Africa is in its unity. The move beyond the borders inherited from colonization is not to create new borders along ethnic or religious bases but to go beyond the current boundaries via integration,” he added.
Africa will be the continent of the 21st century with a strong middle class born out of good policy and economic governance that eases poverty through income distribution, the President noted.
The leader of the West African country highlighted conflicts in neighbouring Libya, Mali and Nigeria. He warned the international and local communities that it would be dangerous to let the insecurity grow instead of helping to bring about a peace, and called for a strategy that cuts off financing and blocks a terrorist strategy that uses propaganda heavily covered by the press adn social media.
In his address, Mohamed Moncef Mazouki, President of Tunisia, said that his country was moving ahead with a peaceful democratic transition, though it and its people had lived for many years under despotism.
“We are trying to grapple with the counter-revolution with moderation and ending the residue of despotism.” he said, emphasizing that Tunisia is also initiating socio-economic development that will be in harmony with the environment and in line with the sustainable development goals of the UN.
Yet, Tunisia’s progress was occurring “at the heart of a region that had witnessed political conflagrations” and the heinous activities of armed groups aimed at undermining the drive for democracy. He was ver concerned, for example, about the situation in neighboring Libya, and hoped that the leaders there would soon agree on a peaceful democratic State without outside influence or interventions. The wise men in the country must preserve national consensus.
More broadly, he expressed deep concern about the activities of armed groups committing grave acts in the wider region and the Middle East. Tunisia was ashamed that such acts were being carried out in the name of Allah, who was for peace and humanity. Nothing justifies this violence, which has reached such unprecedented levels, Mr. Mazouki said. Condemning the heinous killing of prisoners or hostages no matter what nationality they are, he said: “we are all human beings.”
He went on to say that regimes must rule in harmony with the will of the people. They must promote development, education and other polices which would lead to unifying societies and improving living standards. Some of the major powers had supported despotism for many years under the pretext of ensuring stability. Turning to the Israeli-Palestinian conflict, he called for lifting of all blockades on Gaza and throughout the territory. The Palestinian people are crying out for rebuilding their devastated lands, he added.
Finally, he reiterated his country’s call for the creation of an “international constitutional court” which would give advice on such issues as elections and adherence to international legal norms. Mr. Mazouki said that he hoped such a tribunal would soon “see the light of day”, bringing about the end of despotism. He hoped that process would not take as long as it taken to create the International Criminal Court (ICC).
Also addressing the Assembly, Hery Martial Rajaonarimampianina Rakotoarimanana, President of Madagascar, said that his country was home to five per cent of the world’s biodiversity. As such, when he took office, he had “declared war” on traffickers of rosewood, as well as on all those traded in protected species. He also established an inter-ministerial committee that monitored Madagascar’s “zero tolerance policy” on all trafficking of wildlife and natural resources.
Yet, the President continued, traffickers were able to thwart the stringent oversight measures, largely because of shortfall in resources. Madagascar’s location made it imperative to protect its natural environment and marine resource. It was a perilous region, vulnerable to piracy and all manner of trafficking. While addressing other pressing issues, the Government had been able to declare nearly 10 per cent of the country as protected natural reserves.
On other matters, he said that after years of political instability and crippling polices and measures such as sanctions, Madagascar will not reach the Millennium Development Goals (MDGs) by 2015. However, the country is undertaking a major drive to invest in its people, enhance its infrastructure, expand education opportunity and boost ICT use. Citing one major example, he said more than 100 basic healthcare centres had been opened in recent months.
In additions, President Rajaonarimampianina said tangible results had also been achieved on the security front including, curbing massive cattle theft in parts of the country. As for the post-2015 development agenda, he said that Madagascar was committed to creating a modern, open and transparent nation that respected human rights. “
“Our primary goal is to bring our people out of their precarious situation,” he said, citing major projects to boost Madagascar’s agriculture sector. The aim is not only to improve livelihoods at home, but to transform Madagascar into a “food hub” in the region. He added that his Government is also working hard to create jobs and enhance its tourism infrastructure, both of which are vital for development.
Since Wednesday, speakers have taken to the podium in the UN’s renovated General Assembly Hall to address the 193 Member State on the theme of “Delivering on and Implementing a Transformative Post-2015 Development Agenda” as well as urgent crises ranging from the ongoing conflicts in Syria, Iraq, Ukraine and South Sudan.
Climate change was among the topics noted in the addresses of other leaders today, including Ethiopia’s Hailemariam Dessalegn. The Prime Minister told the Assembly that climate change is undermining his country’s efforts to meet its development aspirations, including the Millennium Development Goals (MDGs).
He called for international support on mitigation and adaptation, to adequately recognize the efforts of his country to minimize the impacts of climate change.
“Although we have contributed virtually nothing to global warming, we are indeed playing a leading role in terms of mitigation by scaling up our efforts in renewable energy and promoting energy efficiency,” Mr. Dessalegn said.
“It is only fair and proper that this be adequately recognized and supported,” he added, noting that the world has the capacity and resources to address the challenges, though it still requires leadership and political commitment at all levels.
He also addressed the security situation in the region, including the fighting in neighbouring Somalia, and ongoing crisis in South Sudan, towatds whose peaceful resolution Ethiopia is cooperating with the UN, the African Union and other international partners.
“We cannot be oblivious to the nexus between our sustainable development agenda and the global situation of peace and security,” Mr. Dessalegn cautioned.
In his address, Al Hadji Yahya Jammeh, President of Gambia, said it was well known that injustice, iniquities, exclusion and greed created international tensions that could lead to catastrophic consequences. This is exacerbated by the “lamentable inertia on the part of the United Nations” as powerful Member States took advantage of weaker ones. The founding fathers of the Organization had intended a world body committed to promoting the principles of peace and security, respectful of the cultural values of all peoples.
To uphold those principles, the Member States needed to avoid all forms of aggression by exercising maximum restraint in their pursuit of national interests. When there were wars, the world economy suffered. The UN must be an all-encompassing global body working in the service of all, and not just for a few, he said.
Mr. Jammeh said the international community should build from the implementation of the Millennium Development Goals to face the challenges of the day. The themes of this year’s General Assembly were thus timely, and gave impetus to further the international agenda post-2015. There is a need to take stock of the Millennium Development Goals’ achievements and failures, particularly struggling countries that would not meet their targets on time.
There are a few current issues in which the United Nations could play a stronger role, he said. One such case is the Ebola disease. For the affected countries, development efforts are now on hold as they grapple with the virus. Humanitarian aid from the United States to battle Ebola was more than just a humanitarian gesture; it was a matter of national security.
The situation in the Middle East remained dire, he said, decrying the loss of life in Palestine, especially that of women and children. Israeli settlements on Palestinian lands are unacceptable and undermine any prospect for a two-State solution. The UN has played a strategic mediating role in the past, and must take up a leading role to achieve a durable and peaceful settlement.
In his speech, the President of Gabon, Omar Bongo Ondimba, said his country has launched a national strategic plan to ensure sustainable development. “This plan stems from a vision, an approach that led to define an ambitious development that integrates the concerns reflected in the Millennium Development Goals (MDGs) and the challenges of climate change and food security.”
“It gives prominence to everything that contributes to the development of the potential of young people. The strategy implemented by Gabon aims to accelerate the structural transformation of its economy in the near future, from a cash economy to an economy of industries and services with high value added,” he added.
Mr. Bongo stressed that these efforts can only thrive in a political, economic and social environment where good governance exists, and it is in this context, that Gabon has institutional instruments such as the National Commission for the fight against illicit enrichment, whose mission is to ensure transparency and the obligation to be accountable in the management of public funds.
“Since then I have made the fight against corruption a priority and…audits and inspections are conducted extensive nationwide with consistent results,” said Mr. Bongo.
On the Ebola crisis, Mr. Bongo said that since the threat of the spread of the virus is global, national responses must be followed up by a general mobilization at the international level.
“My country, which once won the battle with several crises of the Ebola virus, proposes to provide the services of the International Center for Medical Research in Franceville, whose expertise on this epidemic is proved,” he said.
Also addressing the Assembly, Arthur Peter Mutharika, President of Malawi, said that in late May, his country had held its first ever tripartite elections, which enabled Malawians to choose their political leadership, through a democratic and peaceful process. The elections ushered him into office, as the fifth President of the Republic of Malawi. “I would, therefore, wish to inform this Assembly, that despite few challenges, the elections were free, fair, transparent and credible… Malawi has come out of the election much stronger than before.”
He went on to say that the choice of "Delivering on and implementing a Transformative Post 2015 Development Agenda" as the theme for this session of the General Assembly, could not be more appropriate. The fight against poverty, hunger, and inequality, constitutes the greatest challenge of our time, he said, adding that the theme further augurs well with the plans and aspirations of the people of Malawi.
“It is important that, the next global development agenda, should draw lessons on the successes and challenges of the current blue print, the Millennium Development Goals (MDGs). Rather than seeing 2015 as an end point, we must view it as the beginning of a new era; an era in which we eradicate extreme poverty, protect the environment and promote economic opportunity for all,” he declared.
Continuing, President Mutharika said Malawi is on track to achieving four of the eight MDGs, namely: reducing child mortality; combating HIV and AIDS, malaria and other diseases; ernsuring environmental sustainability; and developing a global partnership for development. However, it is unlikely that the country would meet the remaining goals: eradicating extreme poverty and hunger; achieving universal access to education; ensuring gender equality and empowerment of women; and improving maternal health.
“Malawi, will, therefore, be entering the post-2015 development [era] with unfinished business of the MDGs,” he said, explain that one reason for this is inadequate resources. Commitments made by development partners have been unpredictable and often times not fulfilled. “To achieve delivery of the post-2015 development agenda, the global community should not repeat this mistake,” he said, stressing that, more importantly, accountability and transparency, as well as monitoring and evaluation mechanisms, should be promoted.
Also speaking today, Jakaya Mrisho Kikwete, President of Tanzania, similarly highlighted the importance of the upcoming MDG deadline in 2015, and issued an appeal to the international community that it “not lose sight of the unfinished business of the Millennium Development Goals.”
With 461 days remaining until the MDG target date, he warned that the world risked falling short on its promises because of the “unpredictable, unreliable, insufficient and untimely availability of financial resources”, and he called for the creation of “a mechanism to ensure a stable, predictable and reliable source of finance” for nations as they pushed forward in achieving the post-2015 development agenda.
Turning to the issue of climate change, President Kikwete thanked Secretary-General Ban Ki-moon for having convened the recent Climate Summit at UN Headquarters in New York. The President noted, however, that a legally binding climate agreement is imperative and added that Africa was “appealing to all countries from all continents” to reach a consensus at the upcoming UN Climate Change Conference in Paris. “Failure is not an option,” stressed President Kikwete.
The President also voiced concern about the expanding Ebola crisis but expressed his hope that the international community bore the “technology, knowledge and financial resources, which if put together, can stand up against the threat” of the disease.
On that note, he specified four areas in which the UN, its agencies, the US and “other countries with technical-technological capabilities” could help those countries affected by the crisis, including providing a “continued and bolstered” support for the countries until the disease is contained; assisting other nations in Africa “to build capacity for surveillance, isolation and treatment”; intensify efforts to provide those affected countries with cures and vaccines; and, finally, “to stop the stigma that is developing against Africa because of Ebola” which threatens “to kill the all-important tourism trade and investments.”
Also taking the General Assembly podium, Mankeur Ndiaye, Senegal’s Minister for Foreign Affairs and Senegalese living abroad, said it was important to work towards inclusive development. His Government has put into place a national development plan as a reference point for economic and social policy.
Africa faced myriad challenges, one of them being terrorism in the Sahel, which threatened the very foundation of societies and hindered development efforts. He welcomed the Security Council’s adoption yesterday of a resolution pledging to fight extremism, militia and armed groups.
The Horn of Africa is also affected by several conflicts, and West Africa is faced with a health catastrophe now with the Ebola outbreak, he said, welcoming the resounding success of today’s Secretary-General meeting which declared that the virus is not just an Africa problem and warranted international attention and resources.
A holistic approach is needed to strengthen capacity of countries that often face reoccurring crises. To that end, Senegal pledged to continue to support UN peacekeeping operations. But in those affected countries, in addition to political resolutions, economies must also be strengthened so that people have a chance at a better life. The severity of different crises is systematic of a status quo in which reform of the Security Council continues to be bogged down.
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In DRC, an Atlas to boost renewable energies
The Democratic Republic of Congo (DRC) has adopted, for the first time in Africa, an interactive atlas of renewable energy sources.
A virtual continent, the DRC has a wide diversity of natural resources, allowing it to consider a significant growth in hydro, wind and solar energy.
With 600 interactive maps, the Atlas, created by UNDP, Netherlands Development Organization SNV and the Congolese Ministry of Water Resources and Electricity, will inform policy-making on decentralizing energy and encourage further investment in this sector.
Ultimately, Congo will aim to increase the number of sustainable development initiatives, which will limit carbon emissions while creating new livelihoods for populations across the country.
The Atlas is the result of a comprehensive series of studies carried out in remote areas of the country, and it will help to understand the needs required to meet the commitments of the DRC in the “Sustainable Energy for All” initiative (SE4All).
The latter has set three objectives to be achieved by 2030: ensure universal access to modern energy services; double the rate of improvement in energy efficiency at the global level; doubling the share of renewable energy in the global energy mix.
The Atlas reveals a number of opportunities. For example, only 217 of the 780 hydro sites identified by the Atlas were known publicly.
Another example: while the Inga dam alone holds an electricity potential of 44,000 MW, elsewhere in the country, decentralized energy sources, much of them small or mini hydro plants, could create 10 000 MW. The Atlas confirms that small hydro applications are better suited to the local market structure.
Still, the challenges are immense, as it is necessary to mobilize and coordinate large amounts of capital from the public and private sectors; promote standards and policies for energy efficiency; and implement a supportive policy environment.
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‘Ban imports of products that can be produced domestically’
The government has been called upon to ban the importation of products which can be produced by small scale entrepreneurs in the country.
Stakeholders say, markets in the country are dominated by cheap foreign produced products waging an unbalanced competition against locally produced versions.
Speaking during the opening of the Inter-religious Village Community Banks (IR -VICOBA) business exhibition yesterday in Dar es Salaam, Anglican Church of Tanzania Bishop Valentino Mokiwa said the ban will significantly boost local producers.
“The ban will help create market for local products and that way increase local entrepreneurship and create jobs…it will help end poverty,” he said
Commenting on the launched Inter-religious Village Community Banks, Bishop Mokiwa said many Tanzanians find it difficult to start their own business due to lack of initial capital, capacity limit of banks to offer loans and complicated loan procedures.
“The introduction of VICOBA will be a solution to many but the problem remaining is the matter of reliable market,” he said.
“We must support local efforts and the ban on imports of products that can be produced locally will help,” he suggested.
Mokiwa said globalisation of markets and production has produced many opportunities but also caused threats for businesses with locally manufactured goods forced to compete with products that are cheaper and of better quality from emerging economies such as China, India, and Brazil.
“These inexpensive imports are rapidly replacing locally made goods and impede small-scale manufacturers from dominating their domestic market, the government has to take action,” he said.
In his comments, Country Representative of Norwegian Church Aid Gwen Berge who supported formation of the IR-VICOBA the groups are built on strong religious values.
“In future, our emphasis will be on mobilising these groups and providing viable mechanism enterprises,” she said.
“We want to work with the private sector in a symbiotic manner leveraging all our competencies for job creation,” she said.
She said NCA will continue to practice their collective mission to see communities mobilised and empowered to address economic vulnerability and to articulate their theory for change from community mobilisation, training and knowledge formation to action, job creation and social change.
The Inter Religious Village Community Banks (IR -VICOBA) symposium and Business Exhibition commenced earlier this week in Dar es Salaam and ends today.
The, main theme for the exhibition was “Inter Religious Relations, Peace and Development: IR VICOBA as Vehicle for Development” and it attracted numerous exhibitors showcased their products and had the opportunity to network.
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Market access, packaging, finance, key to export competitiveness – experts
Diversifying the Nigerian economy away from oil would require paying more attention to making agriculture and value-adding manufacturing export more competitive.
Good market penetration and effective packaging on the part of the exporter, as well as adequate financing from banks and government would be key to achieving this, stakeholders at the BusinessDay-organised seminar entitled, ‘Agric Transformation Agenda: The Role of Non-oil Export in Economic Diversification,’ have said.
Fidel Anyanna, programme director, Dalehan Limited, who also doubles as CEO, Horeb Safety & Security Services Limited, said export financing needs could be met through advance payment for overseas buyers, internally generated funds, credit from banks to other financial institutions, as well as credit provided by the government in the buyer country.
Anyanna added that Nigerian banks’ risk-averse behaviour often resulted in small scale firms being burdened with high requirements that constrained their access to loans and financial services.
He observed that exporters needed to know that banks often looked for collateral or security for proposed lending, as well as credit worthiness and capacity of the buyer to execute the orders within the stipulated delivery schedules.
He listed financial viability of the export contract, status of the buyer’s country, along with political and economic conditions in the buyer’s contract and compliance with export trade control and exchange control regulations in force, among prospect indicators.
He said while there should be adequate infrastructure and institutional support (incentives) from the government, intending exporters should increase their access to market information and garner good export training to develop capacity to cope with the strenuous demands of the international market.
“There is the need for exporters to train on packaging and standards. The international market is based on standards, not sentiment. When you package a product so well, even someone who does not want to buy can be forced to. Again, most farmers produce without a focus as to where the products are going,” he stressed.
Joseph Idiong, director-general, Association of Nigerian Exporters, said his group had thought it wise to propagate export financing, adding that farmers must be conscious of the fact that producing for export required different levels of technology, raw materials and training.
Ivana Osagie, managing director/ CEO, Notore Seeds, pointed out that the problems facing the agric export sector could be mitigated by clustering small-scale farmers and linking them up with large-scale players, to bring them to an understanding of key processes and procedures.
According to her, agriculture must be understood as a science, rather than an art, as people from research institutions or academic backgrounds needed to be instructed on practical agricultural processes, while more should be done to mechanise agriculture, encourage internal effectiveness and economies of scale.
She further observed that Nigerian banks must think of innovative ways of encouraging financing as it is done in other climes such as the United Kingdom and other countries in Europe.
“By using the right fertilizer, applying the best practices and approaches, one metric ton can be increased to the value of 10 metric tons,” she said.
Frank Aigbogun, publisher/CEO, BusinessDay,said though people often got frustrated with the way things were done in the country, they must begin to realise that things were gradually changing, even though some might consider the changes slow and halting.
He added that the likes of Notore and the Bank of Agriculture, which were doing a lot to diversify the Nigerian economy and increase non-oil exports should be emulated by other institutions.